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Indian ETFs Fall on Widespread Corporate Reform; Plunging Rupee

  +Follow August 16, 2013 4:13PM
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Investors in the emerging market of India were rocked Friday, as the country plans to concomitantly rework their outdated 57-year-old corporate legislative laws and address a rapidly devaluing currency. 

India has long been plagued by corruption. Kickbacks, gift and outright fraud are commonplace, as unscrupulous players take advantage of a financial system that has failed to keep pace with an increasingly complex global economy.

In 2009, the country was rocked by a massive fraud case involving the company Satyram Computer Services. The chairman confessed to overstating company assets and earnings by over $1 billion. The scandal, often called "India's Enron," made it clear the country lacked a proper oversight body and laws sophisticated enough to deal with modern finance.

The country is simultaneously scrambling to also stabilize the rupee, which is the worst performing emerging market currency in comparison to the dollar. The Reserve Bank of India is taking action and imposing controls to increase overseas direct investments, as the diminishing value of the country’s currency has made it more difficult for Indian corporations to buy assets outside the country.

India has also had to deal with inflation and a widening current account deficit. The corporate reforms and worsening economy coupled to spook investors and trigger an ETF sell-off.

Indian ETFs across the board retreated on Aug. 16. iPath MSCI India Index (INDA) dropped 4.84 percent to hit $21.41 a share. PowerShares India ($PIN) dropped 4.64 percent to hit $15.62 a share. WisdomTree India Earnings ($EPI) fell 4.53 percent to hit $14.76 a share.

The biggest loser on the day was Direxion Daily India Bull 3X Shares ($INDL), which plummeted 12.89 percent to hit $10.72 a share amid eight times normal volume. 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for PIN
ETF Trends
21 Oct 14 17:20:23
Festival of Lights Could Light up #India ETFs http://t.co/qfvCgfA9r3 #ETF #emergingmarkets $SCIF $EPI $PIN $INDY
Tom Lydon
21 Oct 14 17:15:27
Festival of Lights Could Light up #India ETFs http://t.co/WHM5pX9t7j #ETF #emergingmarkets $SCIF $EPI $PIN $INDY
Höød Pharmaci$t
20 Oct 14 14:12:02
money make the world $pin
Stock Market Picks
20 Oct 14 07:29:47
ETFearning's Results: $PIN opened LONG on 10/16 at $20.87 and closed today's at $21.49 +2.97% http://t.co/iRR3Iz08yO $QQQ $SPY #stocks #ETFs
ghetto arab
20 Oct 14 03:58:05
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20 Oct 14 03:57:29
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21stCommons
19 Oct 14 05:28:26
$20 Haiku #2 First Great $pin Cycle “to victors belong the spoils” insane empire dream. http://t.co/2xmH0kNI54 Enjoy!
 Magician
17 Oct 14 14:49:47
RT @SeekingAlpha: What's Next For China And India? http://t.co/FENnkblvCA $FXI $EPI $INDY $PGJ $GXC $YINN $FXP $PIN $INDL $INP $YANG $INXX …
awolam
17 Oct 14 14:37:49
RT @SeekingAlpha: What's Next For China And India? http://t.co/FENnkblvCA $FXI $EPI $INDY $PGJ $GXC $YINN $FXP $PIN $INDL $INP $YANG $INXX …
Seeking Alpha
17 Oct 14 14:29:42
What's Next For China And India? http://t.co/FENnkblvCA $FXI $EPI $INDY $PGJ $GXC $YINN $FXP $PIN $INDL $INP $YANG $INXX $MCHI $INDA $XPP
Dwayne Membrane
17 Oct 14 11:50:13
LOL. Gilead threatened to free itself from its OpEx chain, and 12.6k shares showed up on Sell line to stop that action cold. $GILD $pin
David Durand
16 Oct 14 06:42:44
$EPI selling is out of proportion IMO. Let's see where we close. India was down 1.33%. Rupee UP today: http://t.co/PlAtOLcYO6 $PIN
Robert  Duval
15 Oct 14 14:22:12
@ByrneRWS Bespoke @bespokeinvest 6m6 minutes ago Of 35 country ETFs we track, only one, $PIN, is less than one standard deviation oversold.
FinanzLinksUSA
15 Oct 14 14:20:15
RT @bespokeinvest: Of the 35 country ETFs we track, only one, $PIN, is less than one standard deviation oversold.
Bespoke
15 Oct 14 14:15:52
Of the 35 country ETFs we track, only one, $PIN, is less than one standard deviation oversold.
Dimitra DeFotis
15 Oct 14 10:03:21
India's Biggest Airline Buying 250 New Planes http://t.co/4DQ4XGpC2n $EADSY $SMIN $PIN $INDA
Toca o Terror
14 Oct 14 16:16:36
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stockeye
14 Oct 14 06:57:18
like how india holds up so far $PIN
Alexander Nikolov
14 Oct 14 02:11:30
The only markets that are still holding and are looking positive to me are India and Thailand. $PIN, $THD
thiabelle !
14 Oct 14 00:33:12
RT @nightmarekidzjm: $pin ma$ta http://t.co/XJOQw7BmmY
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14 Oct 14 00:26:29
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14 Oct 14 00:26:01
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$$ em $$
14 Oct 14 00:20:31
$pin ma$ta http://t.co/XJOQw7BmmY
				
				
  +Follow August 16, 2013 4:13PM
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